The adequacy of transparency in the bond markets has been considered by the FSA and also at a European level (European Commission, the Committee of European Securities Regulators (CESR) and The European Securities Markets Expert Group (ESME).

FSA assessment:

Article 65(1) of the Markets in Financial Instruments Directive (MiFID) required the European Commission, on the basis of public consultation and in the light of discussions with competent authorities, to report on the possible extension of the MiFID provisions concerning pre- and post-trade transparency to transactions in financial instruments other than shares.  

Work carried out in conjunction with the MiFID Article 65(1) review:

• June 4, 2010 - 'Summary of Responses to the ICMA Survey on Corporate Bond Markets – Liquidity and Transparency'
• May 7, 2010 - CESR publishes - 'Consultation paper - CESR Technical Advice to the European Commission in the Context of the MiFID Review: Non-equity markets transparency'
  • ICMA response - ‘ICMA Response to CESR Technical Advice to the European Commission in the context of the MiFID review: Non‐equity markets transparency'* *see also above ICMA Corporate Bond Market Survey response:
• July 2009 - CESR publishes ‘Report: Transparency of corporate bond, structured finance product and credit derivatives markets’ and ‘Feedback Statement: Transparency of corporate bond, structured finance product and credit derivatives markets’
• December 2008 - CESR publishes ‘Consultation paper - Transparency of corporate bond, structured finance product and credit derivatives markets’
  • ICMA/Joint Associations response - ‘Final response to CESR’s 19 December 2008 Consultation Paper on transparency of corporate bond, structured finance product and credit derivatives markets, submitted jointly by ICMA, ISDA, SIFMA, LIBA, EHYA, ESF and BBA’
• April 2008 - Commission publishes 'DG Internal Market and Services working document – Report on non-equities markets transparency pursuant to Article 65(1) of Directive 2004/39/EC on markets in financial instruments (MiFID)’
• September 2007 - Commission hosts public hearing on non-equities markets transparency and publishes a background document ‘Public hearing on non-equities markets transparency – background paper’
  • ICMA response - ‘European financial services industry standard of good practice on bond market transparency for retail investors – a presentation by Richard Britton on behalf of ICMA’
• August 2007 - Commission publishes ESME’s report - ‘Non-equity market transparency - ESME’s report to the European Commission’
• July 2007 - CESR publishes ‘Feedback statement - CESR’s response to the Commission on non-equities transparency’ and ‘Technical Advice - CESR’s response to the Commission on non-equities transparency’
• May 2007 - CESR publishes ‘Consultation paper - non-equity transparency’ 
  • ICMA Response
• February 2007 - CESR issues call for evidence on non equities markets transparency - ‘Call for Evidence - non-equities markets transparency’
• November 2006 - Commission issues mandates requesting technical advice to CESR and ESME (European Securities Markets Expert group) - ‘Request for advice on non-equities markets transparency’
• November 2006 - Commission publishes ‘DG Internal Market and Services working paper – feedback statement - Pre- and post-trade transparency provisions of the Markets in Financial Instruments Directive (MiFID) in relation to transactions in classes of financial instruments other than shares’
• November 2006 - CESR responds to Commission’s August 2006 request - ‘CESR’s response to the Commission’s request for initial assistance on non-equities Markets transparency’
• August 2006 - Commission asks CESR to conduct fact-finding exercise on cash bond markets -‘Request for initial assistance on non-equities markets transparency’
• June 2006 - Commission issues ‘Call for Evidence - Pre- and post-trade transparency provisions of the Markets in Financial Instruments Directive (MiFID) in relation to transactions in classes of financial instruments other than shares’ 59 responses are received.
  • ICMA’s response (15 September 2006) ‘ICMA response to the Commission’s call for evidence - Pre- and post-trade transparency provisions of the MiFID in relation to transactions in classes of financial instruments other than shares’